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<br />Said liability insurance shall name the State as a
<br />co-insured. A copy of a certificate of said liability
<br />insurance must be filed with the Colorado Water Conservation
<br />Board prior to the start of the operation of the project
<br />system.
<br />
<br />8. Make the services of said project available within its
<br />capacity to all persons in the Contractor's service area
<br />without discrimination as to race, color, religion, or natural
<br />origin at reasonable charges including assessments, taxes, or
<br />fees in accordance with a schedule of such charges, whether for
<br />one or more classes of service, formally adopted by the
<br />Contractor through its board of directors, as may be modified
<br />from time to time by the Contractor, The initial rate schedule
<br />must be approved by the State. Thereafter, the Contractor may,
<br />subject to the approval of the State, make such modifications
<br />to the rate schedule as the Contractor deems necessary to
<br />efficiently and economically provide for the financial
<br />requirements of the system as long as the rate schedule remains
<br />reasonable and non-discriminatory.
<br />
<br />9. Adjust its operating costs and service charges from
<br />time to time to provide for adequate operation and maintenance,
<br />emergency repair services, obsolescence reserves, and debt
<br />reserves,
<br />
<br />10. Expand the system from time to time to meet reasonable
<br />growth or service requirements in e area within its
<br />jurisdiction,
<br />
<br />11, Provide the State'~ . ch rn'c reports as it may
<br />require and permit periodic In.~. 4. .~ . its operations and
<br />accounts by a designated repres_~a~ of the State.
<br />
<br />12, Purchase from theA\i~ all of the State's right,
<br />title, and interest in saidiP~ect and any facilities thereof
<br />at a total purchase price of Two Hundred Twelve Thousand Eight
<br />Hundred Forty Dollars ($212,e40) payable in forty (40) annual
<br />installments of Five Thousand Three Hundred Twenty-One Dollars
<br />($5,321) each, which first installment shall be due and payable
<br />on September 1, 1984, and yearly thereafter until the entire
<br />principal sum shall have been paid, Said installment payments
<br />shall be made payable to the Colorado Water Conservation Board,
<br />payable at the offices of said Board in Denver, Colorado.
<br />
<br />
<br />13. Obtain and maintain general fire and hazard insurance
<br />on the project system in an amount not less than the amount
<br />owing to the State for purchase of the project system until
<br />the Contractor has purchased the project system, The State
<br />shall be the sole insured of this policy, The purchase price
<br />payable to the State shall be reduced in the amount of any
<br />payments made to the State under this insurance coverage; if
<br />only a portion of the purchase price is paid to the State under
<br />this pOlicy, the number of installment payments shall remain
<br />unchanged, however the amount of each payment shall be
<br />reduced.
<br />
<br />14. Comply with Construction Fund Program Procedures
<br />attached hereto as Schedule A,
<br />
<br />,
<br />15. Comply with the provisions of Section 5 of S,B. 439,
<br />1981 Session of the Colorado General Assembly.
<br />
<br />16, Not sell, convey, assign, grant, transfer, or
<br />otherwise dispose of the projector any portion thereof, so
<br />long as any of the annual installments required by paragraph
<br />A,12. above remain unpaid, with04t the prior written
<br />concurrence of the State, .
<br />
<br />Page 3 of 7 Pages
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